Our sister publication SlashGear reports that the fate of the Palm Pixie or Eos is most likely closely tied to the fate of the Pre. Palm sold a good number of Pre’s over last weekend when the device debuted. However, with the Pre selling out in many areas and catching criticisms for some software and design issues, it will likely be a while before the Eos debuts.

Palm isn’t as flush with cash as some analysts would like to see to be competing in the high-end smartphone market dominated by Apple and RIM. Palm will want to find a strong market for the Pre before it tosses another webOS device to the wolves.

TechCrunch cites sources in Asia that claim Palm is playing a wait and see game before starting production on the Eos/Pixie project. The unnamed source is quoted as saying, “Palm has decided to put the Pixie on hold until they have better visibility into how its current models are selling in the market.”

[via SlashGear]